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`Real Estate Deregulation Talks to Start This Month`

Posted January. 12, 2009 07:16,   


Land, Transport and Maritime Affairs Minister Chung Jong-hwan said yesterday that talks will begin this month on easing major real estate regulations, such as declassifying three Gangnam districts in Seoul from the list of highly speculative areas.

Chung announced real estate deregulation will start this month, including the abolishment of the price ceiling on new private residences and apartments and a temporary waiver on capital gains tax on new houses.

“It was inevitable to introduce these regulations when housing prices soared. We hesitated to make a decision in our policy briefing to the presidential office in December last year due to conflicting views over when would be the appropriate time for deregulation,” he said.

“A consensus has already been formed. There is no need to holdup (deregulation) until the end of the first half.”

Chung also rejected the demand from construction companies not to audit the source of house purchase capital, saying, measures that could cause moral hazard will not be tolerated.

On the construction of the Honam bullet train line stretching to Mokpo, South Jeolla Province, Chung said the ministry plans to complete it at least one year earlier than the original target of 2017.